Optically polarized Xe offers the potential of greatly enhanced sensitivity in NMR. We have setup a small polarization cell based on a diode laser that achieves a 20 % polarization of 100 ml of Xe in about 10 mm. We are presently exploring the applications of this to studies of complex materials in low fields (20G) via a home-built spectrometer and with the aim of applying such studies to large scale engineering problems.